HH the Emir Sheikh Hamad bin Khalifa al-Thani opened yesterday the First Summit of Gas Exporting Countries at the Doha Sheraton Hotel. The event was attended by HE the Deputy Prime Minister and Chief of the Emiri Diwan Abdullah bin Hamad al-Attiyah.
The Emir delivered a welcome address in which he expressed profound thanks to dignitaries and representatives of member states for accepting the invitation to attend the First Summit of the Gas Exporting Countries’ Forum, which has become one of the most important forums that bring together decision-makers, experts and specialists to discuss issues related to natural gas industry and trade and to thrash out ways of its advancement in pursuit of promoting the status of this resource as a vital source of clean energy in the world.
HH the Emir said that fossil fuel still represents the largest share of the total energy mix consumed globally. This situation will probably continue for the foreseeable future. Hence, the increasing challenges facing this industry are not confined only to meeting the growing demand for energy but they extend to include the environmental, social and economic aspects in both the exporting and importing countries, due to the growing integration of energy with these aspects and their mutual impact on each other.
“These renewable and escalating challenges urge us to look for a variety of innovative solutions which are economically viable in a way that guarantees the interests of consumers and producers together,” HH the Emir noted.
HH the Emir added that the utilisation of hydrocarbon resources to achieve the economic and social development, has a negative impact on the environment, but in contrast natural gas has a advantage over all other types of fossil fuel since it is one of the most important clean energy sources. This advantage has led in recent years, to its increasingly widespread use in the electric power generation, petrochemical and metallic industries, as well as household consumption.
The Emir underlined that the widespread use of natural gas did not lead to reducing of disparities between oil prices and gas prices on the basis of the equivalent thermal power, but on the contrary these discrepancies have increased of late.
HH the Emir highlighted that the forum was established to protect the interests of gas exporters along the lines of protection and support given by various parties to coal and oil industries. “Therefore, we have to act seriously to realise these interests without leaving a passive impact on the interests of gas consumers,” HH the Emir said.
It is illogical that discrepancies between oil prices and gas prices increase in favour of the first despite the thermal and environmental advantages enjoyed by the second. Therefore, gas exporters should not give up their fair demand for gas prices equivalent to oil prices and to explore all means to fulfil this demand, HH the Emir underlined.
“Here we do not speak about controlling production but about other means such as upgrading and supporting the technologies that expand the areas of using gas, and advocating the use of gas at international and regional forums, influencing the laws that support gas exploitation, enacting laws that take into account the environmental advantages of gas, exchange of information on markets and technical and financial aid and promotion of new markets,” HH the Emir said.
For instance the expansion in the use of the liquefied natural gas has furnished an ideal solution for the problem of lack of proximity between gas consumption markets and production areas, as is the case in the markets of East Asian countries, as well as the problem of heavy dependence on one source to fulfil consumption needs, as is the case in the European markets. Natural gas has also contributed to opening new markets in China and India, and increased the consumption of gas in Europe and elsewhere, HH the Emir said.
In return, the rise in the significance of the role of LNG has necessitated a substantial increase in the volume of capital investments in all stages of its production, processing, and export, as well as a fundamental change in the nature of the contracts governing the operations of gas buying and selling. Therefore, it is necessary to strengthen the long-term strategic partnership relations among all parties related to these stages, HH the Emir added.
HH the Emir highlighted three main points: First, the synergy and collaboration of all members of this Forum are essential for the realisation of its goals. Non commitment on the part of some members will have a negative impact on the interests of all members particularly the bigger ones.
Second, HH the Emir reassured gas consumers that the protection of exporters interests does not mean at all that it would be at the expense of its consumers interests. “We call for constructive dialogue with them through consultation and exchange of information for the sake of developing gas and its usage for the benefit of all parties.”
Third: It has been reported before that gas importers are members of a forum for the rich, and we have endeavoured as much as possible to change this by opening new markets, “we do not want to hear that the Forum of Gas Exporters is a forum for major exporters. The Forum not only welcomes but also encourages any gas exporter who wants to join,” HH the Emir said.
HH the Emir underlined that the National Vision of the State of Qatar 2030 was based on several pillars including the accomplishment of economic and social development, “so we endeavour to develop our economy to be a diversified competitive economy and more consistent with the requirements for preserving and protecting the environment from pollution. This is what would be achieved by several means, including the optimal utilisation of natural gas as a clean energy source”, HH the Emir said.
“We have no doubt in the ability of the member states of this Forum to protect their interests and pursue their important role in examining the ways of developing global gas markets, and to play an active role in developing mechanisms of operation of this market,” HH the Emir underlined.
HH the Emir noted that it is clear that there are increasing questions about energy security in general and natural gas in particular. HH the Emir said participants in the summit would provide valuable insights by discussing relevant topics and proposing ways of strengthening the status of the gas industry.
HH the Emir hoped that this summit would be a good opportunity to explore further co-operation and co-ordination prospects between member states in order to upgrade the gas industry.
In conclusion, HH the Emir wished the audience a fruitful summit and a pleasant stay in Doha.
